EXPLORING FOR GOLD & BATTERY METALS · Brewer’s prospective geology, including diatreme breccias, associated high sulphidation alteration, gold and copper mineralization, and geophysics

EXPLORING FOR GOLD & BATTERY METALS IN PROVEN NORTH AMERICAN MINING DISTRICTS

August 2019PUC Monthly Report

Gold & Battery Metals Insights• Month over month commodity prices• Year to date commodity prices

Industry News • Pancon commences exploration at the

St. Laurent Ni-Cu-Co Project• Pancon Expands its 100%-owned Jeffer-

son Gold Project to surround the former Brewer Gold Mine

• First Cobalt and Glencore conclude Term Sheet for refinery restart

• Vale bets on batteries, China with RM20.6b nickel plans

• Troubled Philippine nickel plant muddies Sumitomo Metal’s outlook

• Jervois Mining seals merger with Cana-da’s eCobalt

• Rick Rule: I see gold moving this year, uranium next year

Supply & Demand News• Nickel consumption in passenger EV

batteries up 57% YoY in May 2019 • Surge in battery nickel use is more bad

news for cobalt price• World Gold Council expects metal de-

mand, prices to stay strong• CIBC sees gold hitting $1,500 an ounce

next year • Cobalt Market Update: Q2 2019 in

Review • China’s Tsingshan roils nickel market with

buying spree• Can metals supply keep up with Electric

Vehicle demand? • Battery Metals Outlook • Base Metals Update - July 2019

Electric Vehicle News• BMW CEO to quit after carmaker loses

early lead in electrics• The US and Europe are getting more

anxious about EV battery shortages• Electric Vehicle Price Guide - best EV

discount from dealers in the US • Tesla’s sales grew over 40% in China this

year• India to add 5,000+ electric buses in 65

cities in ongoing massive EV push

+++ lots more news inside

Gold (Au)

Nickel (Ni)

Copper (Cu)

Cobalt (Co)

June 30, 2019 $1,410.07 $12,660.00 $5,970.00 $25,500.00

July 31, 2019 $1,425.60 $14,360.00 $5,926.00 $26,000.00

Change (+/-) $15.53 $1,700.00 $44.00 $500.00

Change (%) +1% +13% -1% +2%

Source: The London Metal Exchange* Gold price per ounce

COMMODITY PRICES (in US$ per tonne)INCLUDED IN THIS REPORT

PANCON’S CEO ON GOLD AND NICKEL EXPLORATION IN PROVEN NORTH AMERICAN MINING DISTRICTS

TSX VENTURE: PUC

July 24, 2019

Pancon’s CEO Layton Croft talks about how well-position the Company is with all its six projects on a four minute interview with Investor Intel.

“We are in proven mining districts, near and surrounding former or producing mines. We also focus on relationships and competence and capacity. We have world-class geologists and we work hard on engaging with all of our stakeholders and shareholders on a regular basis,” says Layton Croft.

Pancon currently holds a gold project in South Carolina and five nickel-copper-cobalt projects in Northern Ontario. To view the short, four-minute interview, click here.

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 2

PUC Monthly Report - August 2019

Pancontinental Resources Corporation (“Pancon” or the “Company”) (TSXV: PUC) is a Canadian junior mining company focused on North American gold and battery metals projects in proven mining districts and near or surrounding produc-ing or former mines.

Gold Project in South Carolina:

• Pancon’s 100%-owned Jefferson Gold Project is 15 km along-trend from the Haile Gold Mine and surrounds the former Brewer Gold Mine property, on the prolific and underexplored Carolina Slate Belt in South Carolina, USA.

Battery Metals Projects in Northern Ontario:

Pancon has 5 nickel-copper-cobalt projects in Northern Ontario:• The Montcalm, Nova, Gambler and

Strachan projects are adjacent to and near the former Montcalm Ni-Cu-Co Mine located 65 km northwest of Timmins, ON, Canada

• The St. Laurent Project has an advanced Ni-Cu-Co-Au-Pt-Pd target and is located 50 km south of Detour Lake Mine and 20 km southwest of Casa Berardi Mine in northern Ontario, Canada

PANCON RESOURCES (TSXV: PUC)

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Presented by Pancon, the PUC Monthly Report highlights the latest news in gold and battery metals space such as nickel, copper and cobalt.

It includes news that affects the market as well as companies that are exploring for, developing and producing gold and bat-tery metals.

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LME Nickel(January 1 to July 31, 2019)

LME Nickel (July 1 to July 31, 2019)

LME Gold (January 1 to July 31, 2019)

LME Gold(July 1 to July 31, 2019)

LME Copper (January 1 to July 31, 2019)

LME Copper (July 1 to July 31, 2019)

LME Cobalt(January 1 to July 31, 2019)

LME Cobalt (July 1 to July 31, 2019)

YEAR TO DATE COMMODITY CHARTS

MONTH OVER MONTHCOMMODITY CHARTS

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 3

PUC Monthly Report - August 2019

The Montcalm Project (3,780 hectares) is located within the prospective Montcalm Gabbro Complex, 65 km northwest of Timmins, Ontario.

The project is contiguous to and surrounds the western, northwestern and southwest-ern portion of the former Montcalm Mine, currently owned by Glencore plc.

The former Montcalm Mine was discov-ered and developed based on a single airborne electromagnetic anomaly identified in 1970s and previously mined 3,931,610 tonnes of ore grading 1.25% nickel, 0.67% copper and 0.051% cobalt, producing in excess of 4 million pounds of cobalt (Ontario Geological Survey, Atkin-son, 2011).

St. Laurent Project (4,170 hectares) is located in St. Laurent Township, 160 km northeast of Timmins, 50 km south of Detour Lake Mine and 20 km southwest of Casa Berardi Mine.

Past shallow drilling at the St. Laurent Project identified disseminated multi-element sulphide mineralization across notable widths trending towards a large gabbro-hosted magnetic feature.

The Ni-Cu-Co-Au-Pt-Pd zone is open along strike and at depth. This mineralized zone, importantly, is coincident with a strong 600-metre long EM anomaly.

The Nova Project (2,080 hectares) is located in the Montcalm Greenstone Belt,19 km southwest of Glencore’s former Montcalm Mine.

The Strachan Project (2,280 hectares) is lo-cated 15 km south of the former Montcalm Mine, in the Strachan Gabbro Complex.

The Gambler Project (7,630 hectares) is a camp-size project situated in the Mont-calm Gabbro Complex surrounding the Montcalm Project and adjacent to the former Montcalm Mine.

MONTCALM NI-CU-CO PROJECT

GAMBLER NI-CU-CO PROJECT

STRACHAN NI-CU-CO PROJECT

ST. LAURENT NI-CU-CO-PGE PROJECT

NOVA CU-CO-AU PROJECT

SOUTH CAROLINA PROJECT

The Jefferson Gold Project is located in Chesterfield County, South Carolina, on one of the most significant gold trends in the United States: the Carolina Gold Belt.

The Jefferson Gold Project is adjacent to the former Brewer gold mine (which produced 178,000 oz Au from 1985-1991), and 15 km up trend from OceanaGold’s producing Haile gold mine.

The former Ridgeway gold mine, located 50 miles along trend southwest of the Jef-ferson Gold Project, was a 15,000-tonnes per day open pit operated by Kennecott Minerals from 1988-1999.

The Haile gold mine, first discovered in 1827, is today a new open pit operation with a multi-million ounce resource that commissioned in December 2016. Haile is owned and operated by OceanaGold (TSX: OCG), which reports ongoing exploration and the potential for an expansion phase to an underground mine at Haile.

Pathway conduits of mineralization discov-ered at Jefferson mimic the same initial exploration successes at Haile.

JEFFERSON GOLD PROJECT

NORTHERN ONTARIO PROJECTS

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 4

PUC Monthly Report - August 2019

CONTINUED ON PAGE 5

INDUSTRY NEWS

Pancon commences exploration at the St. Laurent Ni-Cu-Co ProjectJuly 2, 2019

Pancon Expands its 100%-owned Jefferson Gold Project to surround the former Brew-er Gold MineJuly 15, 2019

First Cobalt and Glencore conclude Term Sheet for refinery restartJuly 15, 2019

First Cobalt notes former eCobalt Exec-utive’s opposition to value-destroying Jervois transaction July 15, 2019

Nickel jumps but fear of Indonesia export ban is unfoundedJuly 17, 2019

Guatemala court upholds request to sus-pend work at huge nickel mine July 19, 2019

Pancon CEO on the gold and nickel advan-tages in proven mining districtsJuly 24, 2019

Vale bets on batteries, China with RM20.6b nickel plansJuly 24, 2019

Troubled Philippine nickel plant muddies Sumitomo Metal’s outlook July 24, 2019

Jervois Mining seals merger with Canada’s eCobalt July 24, 2019

Nickel cools off as investors settle their nervesJuly 25, 2019

Jervois Mining update on Idaho Cobalt development strategy July 25, 2019

Jervois Mining Board and Management invest A$2.76M July 29, 2019

Rick Rule: I see gold moving this year, uranium next yearJuly 29, 2019

Why have cobalt prices crashed July 31, 2019

PANCON EXPANDS ITS 100%-OWNED JEFFERSON GOLD PROJECT TO SURROUND THE FORMER BREWER GOLD MINE IN SOUTH CAROLINA

July 15, 2019

Pancontinental Resources Corporation (TSXV: PUC) (“Pancon Resources,” “Pancon” or the “Company”) is pleased to announce it has strategically improved its 100%-owned Jef-ferson Gold Project’s land position on the gold-rich Carolina Slate Belt in South Carolina, USA (see Figures 1 and 2). The Project has grown to 644 hectares (1,591 acres) and now surrounds the former Brewer Gold Mine property (see Figure 3).

The Jefferson Gold Project is located on the same mineralized trend and 15 kilometres northeast of the operating Haile Gold Mine, which produced 131,819 ounces of gold in 2018 and has measured and indicated gold resources of 3.1 million ounces. The Jefferson Project is located 55 kilometres along trend northeast of the former Ridgeway Gold Mine, where Kennecott Minerals produced more than 1.6 million ounces of gold from 1988-1999.

“Pancon acquired the Jefferson Gold Project, on the highly mineralized, prospective and under explored Carolina Slate Belt, in mid-2016. In light of today’s strengthening gold market (see Figure 4), we have repositioned the Jefferson Project to take full advantage of market dynamics with our improved land package,” said Layton Croft, Pancon President and CEO. “Our Project now surrounds the former Brewer Gold Mine, which produced 178,000 ounces of gold several decades ago from open pit operations that mined only down to 100-metre depths.”

Brewer’s prospective geology, including diatreme breccias, associated high sulphidation alteration, gold and copper mineralization, and geophysics support a possible porphy-ry-style copper-gold system at depth (Schmidt, R.G., 1978, The Potential for Porphyry Copper-Molybdenum Deposits in the Eastern United States, US Geological Survey).

Figure 1: Carolina Slate Belt

The Carolina Slate Belt runs from Georgia northwest through the Carolinas to Virgin-ia, and has hosted many gold mines, including Barite Hill, Ridgeway, Howie, Haile and Brewer. The Jefferson Gold Project surrounds Brewer and is 15 km along trend from Haile. (Source: US Geological Survey and Hatcher and Butler).

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 5

PUC Monthly Report - August 2019

PANCON EXPANDS ITS 100%-OWNED JEFFERSON GOLD PROJECT TO SURROUND THE FORMER BREWER GOLD MINE IN SOUTH CAROLINA (CONT’D)

ELECTRIC VEHICLE NEWS

BMW CEO to quit after carmaker loses early lead in electricsJuly 5, 2019

Toyota starts testing high-efficiency solar cells for electric cars, says could add 35 miles of rangeJuly 5, 2019

The US and Europe are getting more anx-ious about EV battery shortagesJuly 8, 2019

Electric Vehicle Price Guide - best EV dis-count from dealers in the US July 18, 2019

SUPPLY & DEMAND NEWS

Nickel consumption in passenger EV bat-teries up 57% YoY in May 2019 July 9, 2019

Surge in battery nickel use is more bad news for cobalt priceJuly 10, 2019

World Gold Council expects metal de-mand, prices to stay strongJuly 11, 2019

CIBC sees gold hitting $1,500 an ounce next year July 15, 2019

Resilient nickel rallies through macro noiseJuly 16, 2019

Cobalt Market Update: Q2 2019 in Review July 17, 2019

Nickel price catches battery, export ban fever, againJuly 18, 2019

China’s Tsingshan roils nickel market with buying spreeJuly 19, 2019

Can metals supply keep up with Electric Vehicle demand? July 24, 2019

Battery Metals Outlook July 25, 2019

As electric vehicle production ramps up worldwide, a supply crunch for battery metals is loomingJuly 26, 2019

Base Metals Update - July 2019 July 28, 2019

CONTINUED ON PAGE 6

Figure 2: Gold Prospects and gold mines on the Carolina Slate Belt

(Source: US Geological Survey.)

Pancon’s near-term plans for the Jefferson Gold Project include further expanding the land position, conducting geophysics, and preparing for a drill program on targets be-lieved to correlate to the Brewer gold system and with geological similarities to the Haile Gold Mine, including similar host rock lithology, similar age, similar stratigraphy and time of mineralization, as well as similar alteration style and mineral assemblage (Ayuso, R.A., Wooden, J.L., Foley, N.K., Seal, R.R.II, Sinha, A.K., 2005, U-Pb zircon ages and Pb isotopic geochemistry of gold deposits in the Carolina Slate Belt of South Carolina; and Foley, N.K. and Ayuso, R.A., 2012, Gold deposits of the Carolina Slate Belt, southeastern United States: age and origin of the major producers). Of the 10 holes drilled on the Jefferson Gold Project between 2011-17, nine of them intersected gold mineralization, including one averaging 1.27 grams per tonne over 164.3 metres, true width unknown. Pancon cau-tions that the mineralization on adjacent and nearby properties is not necessarily indica-tive of the mineralization that may be identified on the Company’s property.

Figure 3: The expanded Jefferson Gold Project surrounds the former Brewer Gold Mine Property

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 6

PUC Monthly Report - August 2019

ST. LAURENT NI-CU-CO PROJECT WHITEBOARD

The whiteboard below was prepared to highlight the key exploration features of St. Laurent and the reasons why Pancon is excited about this project.

The picture below will redirect you to an interactive document. Click on each picture to zoom in tand get more information.

PANCON EXPANDS ITS 100%-OWNED JEFFERSON GOLD PROJECT TO SURROUND THE FORMER BREWER GOLD MINE IN SOUTH CAROLINA (CONT’D)

ELECTRIC VEHICLE NEWS (CONT’D)

As EV production ramps up worldwide, a supply crunch for battery metals is loomingJuly 26, 2019

LG Chem invests W500b for battery plant in GumiJuly 25, 2019

Tesla virtual power plant in Australia reduc-es electricity rate by more than 20%July 26, 2019

Billions earmarked for EV charging stations and reducing emissions in bipartisan high-way bill July 29, 2019

Tesla’s sales grew over 40% in China this yearJuly 29, 2019

India to add 5,000+ electric buses in 65 cities in ongoing massive EV push July 29, 2019

Porsche has 30,000 Taycan electric car reservationsJuly 29, 2019

The chart below (Figure 4) shows gold prices since 2001 and how recent upward price movements have broken through previous resistance levels.

Figure 4: Gold spot prices based on the GOLDS Commodity Index

(Source: US Geological Survey.

Source: Bloomberg, 5 July 2019.

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 7

PUC Monthly Report - August 2019

Layton Croft, President & CEO: More than 25 years of leadership and management experience in North America, Asia, Europe, Africa and Latin America, including executive and strategic advisory roles with Ivanhoe Mines, Rio Tinto, Peabody Energy and Duke Energy. He also serves as the Chairman of Erdene Resource Development (TSX: ERD).

Todd Keast, P.Geo, QP - Northern Ontario Project Manager: Exploration and project geologist with nearly 30 years of experience in a diverse field of commodities. With an active approach to exploration, has advanced projects from grassroots target generation and evaluation through to deposit discovery, delineation, environmental permitting and PEA.

Kevin Filo, P.Geo., QP - Northern Ontario Project Advisor: Exploration geologist, mining geologist and project generator with nearly 40 years of experience, including 30 years in the Abitibi Greenstone Belt region, Ontario. Former VP Exploration for acqui-sition team which acquired the Detour Gold Mine from Placer Dome, now one of the largest gold mines in Canada.

Margaret Venable, PHD, CPG, QP - South Carolina Project Coordinator and Senior Geologist: Specializing in property evaluation and three dimensional analyses and inte-gration of data sets in order to enhance understanding of mineralization and plan future work, Margaret has 35+ years of experience, from early exploration to mine feasibility. Originally from North Carolina, she has been studying the geology and geophysics of the Brewer-Jefferson area since 2016.

Richard “Criss” Capps, PhD, CPG, QP - South Carolina Project Consultant and Se-nior Geologist: 40+ years of experience in minerals exploration and economic geology. Mr. Capps was part of the team that discovered six gold deposits that became the Castle Mountain Gold Mine in California. Originally from North Carolina, Mr. Capps has been working in the Brewer-Jefferson area since 2016.

Christopher Cherrywell, CPG, QP - South Carolina Principal Geological Advisor: 40+ years of experience, from early exploration to mine feasibility and spent over a decade on the Carolina Gold Belt, including working at Brewer, Haile and Barite Hill in South Carolina. Chris was the lead geologist responsible for discovering the Brewer Gold Mine in 1983-84 and provided project development engineering solutions to support project economics and local socio-economic benefits to the mine.

Mark McMurdie, CFO: Chartered Professional Accountant with more than 30 years of senior leadership experience in public and private companies. Currently serving as CFO for Roscan Minerals (TSX-V: ROS), as well as Director of Finance for franchisor H&S Mas-sage Spa Canada.

Jeanny So, External Relations Manager: More than 20 years of investor relations, public relations, corporate affairs, corporate development and communications experi-ence in the natural resource sector. She also serves as a consultant to Purepoint Uranium Group (TSXV: PTU) and is a member of Prospector and Developers Association of Canada (PDAC) and Women In Mining.

BOARD OF DIRECTORS

Donald Whalen (Chairman)Layton Croft

Rick Mark David MosherDavid Petroff

David Mosher (Chairman) Todd Keast, P. Geo., QPKevin Filo, P.Geo., QP

CAPITAL STRUCTURE

Shares Outstanding 164,829,290

Share Price (July 31, 2019) $0.04

52 Week Range $0.09 / $0.02

100-Day Avg Volume 58,372

Options 10,850,000

Warrants 25,128,218

Fully Diluted 200,807,508

Insider Ownership 35%

Cash Position (as of June 30, 2019)

$500,000

MANAGEMENT TEAM

Disclaimer: All information provided in this newsletter is based upon sources that Pancontinental Resources Corporation ("Pancon") believes to be reliable. Pancon does not guarantee their accuracy or completeness. Any and all statements as of the date of this newsletter are subject to change without notice. All information provided on this newsletter must be understood as information presented for discussion only and not investment advice. Pancon advises all readers and subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured on this newsletter or any stocks for that matter. All statements and expressions of the companies featured are not meant to be a solicitation or recommendation to buy, sell, or hold securities. Pancon expressly disclaims any obligation to update or revise any such forward-looking statements.

Qualified Person: The technical information in this newsletter has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and reviewed and approved by Todd Keast, PGeo, a Qualified Person as defined by NI 43-101, a member of Pancon's Technical Advisory Committee and Pancon's Project Manager. Cer-tain technical information within this newsletter is historical in nature and pre-dates NI 43-101 standards, this information is believed to be reliable however the Company has not verified this material.

NORTHERN ONTARIO TECHNICAL ADVISORY

COMMITTEE

David Mosher (Chairman) Christopher Cherrywell, CPG, QPMargaret Venable, PhD, CPG, QP

Richard “Criss” Capps, PhD, CPG, QP

SOUTH CAROLINA TECHNICAL ADVISORY

COMMITTEE

www.panconresources.comComments or questions ?

Ask us on Twitter @PanconResources or email us at [email protected]